Shares of Sungarner Energies Limited made a whopping gain of over 200 per cent on the listing day at the NSE-Emerge, an SME platform. As against an IPO price of ₹83, the stock was listed at ₹250 and surged further to close at ₹262.35. This was a whopping gain of 216 per cent over the IPO price. During the day, the stock hit a low of ₹237.50.
The company raised ₹5.31 crore by offering 6.4 lakh shares in the public issue. The IPO was subscribed 152.40 times overall, with retail investors portion getting 193 times.
The company offers design and engineering services in the power sector for Solar Power, UPS, Batteries, Inverters, and Solar Panels. According to the IPO draft prospectus, SunGarner has also obtained a WMI code for the manufacturing of electric vehicles. However, that is currently in the prototype stage, awaiting full-scale manufacturing of electric ehicles.
The company intends to utilise the net proceeds to meet working capital requirements (₹3.50 crore) and general corporate purposes (₹1.112 crore).
For the year ended March 2023, the company had posted a profit after tax of ₹74.30 lakh and revenues of ₹1.68 crore.
Of late, SME issues are generating huge listing gains. On Wednesday, shares of Bondada Engineering doubled on the first day of listing. The share price closed at ₹149.62 against the IPO price of ₹75 per share on the BSE SME, a gain of 99.49 per cent.
The stock of Bondada Engineering, a leading provider of core design, engineering, and O&M services for infrastructure projects, on Thursday closed at ₹156.15.